QUIZ – AA015 TOPIC 5 ADJUSTMENT AT THE END OF ACCOUNTING PERIOD

QUIZ – AA015 TOPIC 5

[24 marks]

PEARL ENTERPRISE

Trial Balance

December 31, 2023

	DR	CR
Cash	5,670
Accounts receivable	37,100
Inventory	60,500
Supplies	3,930
Prepaid rent	6,000
Furniture and fixtures	26,500
Accumulated depreciation - Furniture and fixtures		21,200
Accounts payable		46,340
Unearned sales commission revenue		3,500
Note payable, long term		35,000
Capital		23,680
Withdrawal	48,000
Sales		346,700
Sales discounts	10,300
Sales returns	8,200
Purchases	175,900
Purchase discounts		6,000
Purchase returns		7,430
Freight in	9,300
Salary expenses	82,750
Rent expense	7,000
Utilities expense	5,800
Interest expense	2,900
TOTAL	489,850	489,850

 

Additional data at December 31, 2023:

a.       Supplies used during the year RM2,580

b.      Prepaid rent in force RM1,000

c.       Unearned sales commission revenue still not earned RM2,400. The company expects to earn this amount during the next few months.

d.      The furniture and fixtures estimated useful life is ten years using straight line method.

e.       Accrued salaries RM1,300.

f.        Accrued interest expense RM600.

g.      Inventory on hand RM65,800.

 

Prepare:

1.      Journalize the adjusting entries as at December 31, 2023. (narration are not required)

2.      What is the ending balance of Supplies, Prepaid rent, Unearned sales commission revenue, Accumulated depreciation - Furniture and fixtures, Salary expense & Interest expense.

ANSWER

QUIZ – AA015 TOPIC 5

1.

DATE	ACCOUNTS	DEBIT	CREDIT
31 Dec 2023	Dr Supplies expense	2,580√
	Cr Supplies		2,580√
31 Dec 2023	Dr Rent expense	5,000√
	Cr Prepaid rent		5,000√
31 Dec 2023	Dr Unearned sales commission revenue	1,100√
	Cr Sales commission revenue		1,100√
31 Dec 2023	Dr Depreciation expense - Furniture and fixtures	2,650√
	Cr Accumulated depreciation - Furniture and fixtures		2,650√
31 Dec 2023	Dr Salary expense	1,300√
	Cr Salary payable		1,300√
31 Dec 2023	Dr Interest expense	600√
	Cr Interest payable		600√

 

(12√ x 1 = 12 Marks)

 

2.

Accounts	Ending Balance
Supplies (3,930 √ - 2,580 √)	1,350
Prepaid rent (6,000 √ - 5,000 √)	1,000
Unearned sales commission revenue (3,500 √ - 1,100√ )	2,400
Accumulated depreciation - Furniture and fixtures (21,200 √ + 2,650 √)	23,850
Salary expense (82,750 √+ 1,300 √)	84,050
Interest expense (2,900 √ + 600 √)	3,500

 

(12√ x 1 = 12 Marks)

 

 

As Salam and Hi everyone... My name is Puan Asmazatul Yusfiziati Binti Mohd Yusof CA(M) or you can call me Madam Fizi. I'm an Accounting lecturer at Negeri Sembilan Matriculation College (KMNS), Kementerian Pendidikan Malaysia. This blog (www.madamfizi.com) was created to share learning materials on the subject of Accounting for Matriculation, Form 6, Foundation, Diploma, Secondary School and related students.